The upcoming GST Council meeting on September 17, is going to spring a surprise for players like Swiggy and Zomato. That is, what the agenda expectations are right now.
The Council is going to discuss considering food delivery apps, especially the e-commerce operators involved in food supply, as restaurant services, sources told CNBC-TV18.
The fitment committee has proposed that e-commerce firms like Swiggy and Zomato may be made liable to pay Goods and Services Tax (GST) on restaurant services supplied through them.
“E-commerce companies such as Swiggy and Zomato may be made liable to pay GST on restaurant service supplied through them. Restaurant services may be specified under Section 9 (5) of the CGST Act,” the panel has recommended.
However, services supplied by restaurants located in premises that are providing hotel accommodation, especially the ones where per day tariff is more than Rs 7500 per room, should be excluded.
The change may come into effect from January 1, 2022, to allow e-commerce players time to make changes in their software.
For more details, watch the video